At Musoni we’re lucky to work with a variety of fantastic organisations across Africa, from microfinance organisations and SME lenders to companies providing assets on credit. In this new series of blog posts we will highlight some of the great work they’re doing, and where better place to start than Tugende who have been using the Musoni System since October 2013.
Tugende, whose name means “Let’s Go!” in Luganda, support motorcycle taxi drivers in Kampala (known as boda-bodas) using a lease-to-own model that enables drivers to own their own motorcycles in 18 months or less instead of renting indefinitely. Ownership gives drivers financial security, allowing them to save money they would normally spend renting, and accumulating savings in the value of the paid off motorcycle. Payments are comparable to what drivers would otherwise pay in rent, and ownership significantly increases income and job security for drivers.
Watch this great video to see Tugende in action:
To manage their clients and leases, Tugende use the Musoni System. Aside from the core system functionality, workflows and reports, Tugende also take advantage of Musoni’s integration with Payway, a local digital payment channel that enables drivers to repay their loans and deposit their savings from any one of hundreds of agents around Kampala. The payments are automatically reflected in the Musoni System in real time, ensuring the Tugende team always have up-to-date information on their drivers. Using Payway ensures that Tugende do not need to handle cash (reducing risk and overheads), and as drivers can send their repayments at any time, the risk of anyone losing cash or being robbed is reduced.
Without Musoni’s simple and effective system, there is no way we could have grown this quicklyMichael Wilkerson, CEO Tugende
Tugende is expanding at lightning speed. Starting with just three motorcycles in 2010, Tugende now has 840 paying customers with about 200 on the waiting list. In 2014, Tugende grew 300% to over 700 active customers with most in Uganda’s capital Kampala and a promising expansion into Mbarara, a major trading hub in Western Uganda. More than 200 additional customers have already paid off leases with Tugende and taken ownership of their motorbikes. Tugende’s CEO, Michael Wilkerson says: “Without Musoni’s simple and effective system, there is no way we could have grown this quickly. Not having to stress about cash is huge, but so is quickly being able to look up any customer or any lease in the system”.
As a result of this success, in January 2015, Tugende closed a funding round securing their future and enabling them to expand into new markets. The majority of new funds are being used to finance additional leases and meet demand from Tugende’s long customer waiting list. Tugende have also recently launched Tugende VIP, a premium boda service, making it easier for Ugandans to find reliable drivers. The Tugende VIP drivers have extra training in customer service and sign agreements to follow strict rules about responsible driving and customer care. Tugende VIP also offers an online directory and map, allowing passengers to find approved drivers easily. Tugende VIP is launching with 20 drivers in Kampala, but hopes to expand as quickly as possible, while keeping strict standards of quality and responsibility.
Cameron Goldie-Scot, Musoni’s CEO, said “Our goal at Musoni Services is to support organisations across Africa in their efforts to reduce risk, lower costs and improve efficiency. Its fantastic that through the use of the Musoni System, Tugende have already seen tangible benefits for their business. We look forward to working with them for many years to come.”